A development project off Lohmans Crossing, now five years in the making, is headed for another turn of events as the company behind the project plans to ask the city of Lakeway for a new zoning change for the property.

Bill Hayes of Legend Communities reported to a joint meeting of the Lakeway City Council and the Lakeway Zoning and Planning Commission on Sept. 13 that the company plans to seek a planned unit development agreement, or PUD, for what is known as The Square at Lohmans.

Obtaining such an agreement officially would be a zoning change for the roughly 60 acres of land. First in 2019, the Lakeway City Council approved residential zoning for a 45-acre portion of the acreage and then followed up in 2020 to add commercial zoning for 11 acres along Lohmans Crossing.

Hayes told City Council members Sept. 13 that Legend Communities would like to develop the entire swath of land under a PUD. The PUD would retain the specific R1, R3 and C1 residential and commercial zoning designations it received in earlier council actions; however, under a PUD, Legend Communities would pursue a plan to build single-family homes; townhouses; and a mix of retail, office and rental housing. A key feature would be a central 2.5-acre green space for holding community events, according to a presentation Hayes made to council.

“We want to revisit this parcel of land and what it could possibly mean to the city,” Hayes said. “We do think that this piece of land is better suited for some sort of gathering place, and we are trying to fulfill that.”

At times during the discussion, both Hayes and council members compared the commercial area planned for the property to what exists at the Hill Country Galleria in Bee Cave. However, council members said the details to be laid out in the upcoming PUD documents will be critical.

In his remarks to council, Hayes laid out a long-term vision for the property that would see construction of a four-lane Main Street from Lohmans Crossing to the Legend Communities northern property line that it shares with Stratus Properties Inc. Also to be built according to the Legend Communities' plan is an extension of Lohmans Spur, which would extend north beyond the Lakeway Police Department headquarters to join with the to-be-constructed Main Street. Ultimately, Lakeway officials would like to work with both Legend Communities and Stratus Properties to extend Main Street from Lohmans Crossing to its current endpoint at Medical Drive.

Legend Communities became involved in the development of this area in 2016, when it submitted the successful bid to purchase some of the property from the Lakeway Municipal Utility District, according to the presentation Hayes made to council.

The purpose of the joint Sept. 13 meeting was to hear feedback from council members and Lakeway planning commissioners. Mayor Tom Kilgore led a question-and-answer session, when many issues were raised, such as the need to have upscale businesses in the commercial section of the property and how to ensure the area is safe for pedestrians who would walk along interior streets planned for the development.

“Is this truly the highest and best use of the property?” Kilgore said. “We have to make that decision.”

Hayes said as a next step, Legends Communities will be announcing details about a community town hall to be held at 6 p.m. Sept. 28 in Rough Hollow at 903 Highlands Blvd. to give area residents a chance to learn about the latest plans for The Square at Lohmans.